HISTORIC PRESS RELEASE : Investing in Britain [June 1998]

The press release issued by HM Treasury on 11 June 1998.

Public investment will almost double, up to a level of 1.5 per cent of the economy by the end of this Parliament, announced Chancellor Gordon Brown in launching a comprehensive programme to reverse past capital under-investment in public services and infrastructure.

To address the track record of under-investment and ensure that existing and new investment meets the public’s best interests the Chancellor today announced a comprehensive programme:

• an Investing in Britain Fund of up to 1.5 per cent of GDP a year by the end of this Parliament;
• to ensure resources are used to best effect, Departmental Investment Strategies will be published together by the Treasury in Spring 1999; and
• a Capital Modernisation Fund to encourage worthwhile, innovative investments on top of the resources allocated in the CSR;
• decisions on investments and existing assets will be taken on the basis of what delivers the public interest. What counts is what works. So there will be a programme of asset sales and additional investments financed by PFI arrangements;
• following publication of the National Asset Register last November, a further £1 billion a year will be made available for reinvestment as a result of central government disposals;

The following public private partnerships are also planned so as to:

• create new investment in safety for the National Air Traffic Services;
• finance higher investment in developing countries for the Commonwealth Development Corporation;
• new commercial opportunities for the Royal Mint and a broader partnership with the private sector for the Tote;
• in addition, the Government plans sales in 1999-2000 of: a further tranche of student loans;
• debt held in British Energy plc.
• Belfast Port;
• licences to operate the new generation of mobile telecoms services;
• the plans include £2 3/4 billion a year of local authority asset receipts.